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Marginal Price of Lake Recreation and Aesthetics: An Hedonic Approach

Опубликовано на портале: 17-02-2005
Journal of Agricultural and Applied Economics. 1995.  Vol. 27. No. 1. P. 212-223. 
Efficient allocation of water requires knowledge of water’s value in both consumptive and nonconsumptive uses. This study estimates the marginal value of water in lake recreational and aesthetic (RA) use. An hedonic price equation (employing the Box-Cox functional form) indicates lake front location, distance to lake, and scenic view are significant RA characteristics of housing. Water front properties command a premium price for the private access they offer. Beyond the water front, the marginal RA price falls rapidly with increasing distance, becoming asymptotic to some minimum. Twenty-two percent of housing price is found to be attributable to the RA component.

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